Israeli Prime Minister Binyamin Netanyahu has given ground on Jerusalem to bribe Palestinian leaders to go back to peace talks albeit an indirect process mediated by the United States. He has agreed to freeze construction on an East Jerusalem project at Ramat Shlomo for two years. As a result, Palestinians are celebrating their success in manipulating the Obama administration into squeezing concessions out of Israel even before the talks begin - and on Jerusalem, no less.

debkafile's Washington sources report that instead of a freeze on all Israeli construction in East Jerusalem, the Obama administration asks Israel to quietly suspend all building licenses and other permits for just four weeks, to give US Middle East envoy George Mitchell a chance to persuade the Palestinian leader Mahmoud Abbas to accept US-moderated proximity talks. Israel did indeed make Abbas an offer of temporary borders, but he turned it down and demanded that the US President "impose" a solution.

US president Barack Obama kept on turning the screw on Israeli minister Binyamin Netanyahu Wednesday, March 24, after their harsh conversation Tuesday: Netanyahu was told bluntly to issue a White House-dictated public pledge to eschew further construction in East Jerusalem, or else face a US presidential notice condemning Israel and holding its government responsible for the failure to restart indirect Israel-Palestinian talks. This standoff was unsolved when Netanyahu flew home that night.

debkafile's exclusive sources report that already Friday, March 12, Israeli prime minister Binyamin Netanyahu gave in to US Secretary of State Hillary Clinton's peremptory demand for a moratorium
on construction in East Jerusalem for the duration of talks with the Palestinians in the indirect and direct stages. He issued the relevant instructions Sunday.

debkafile reports: The decision to add 1,600 housing units to Ramat Shlomo in East Jerusalem was taken in protest of the way US Vice President Joe Biden lay down the law on the Iran issue in his talks with Israeli government leaders Tuesday, March 9. The key objective of his visit was clearly to hold Israel back from attacking Iran's nuclear installations even after the US backtracked on its promises of tough sanctions instead.